ClearOne, Inc. v Revolabs, Inc.

ClearOne sued Revolabs alleging tortious conduct in hiring away one of its employees. The district court dismissed for lack of personal jurisdiction. The Court affirmed. It first held that the Utah rule on specific jurisdiction based on the Calder effects test was overbroad under newer United States Supreme Court precedent as it focused only on the effects of conduct on the plaintiff instead of the effects of the defendant’s conduct on Utah. Applying the narrower rule, the court held that because the alleged misconduct happened in Texas and other states but not in Utah and there was no real contact with Utah other than the effect on ClearOne, there was no specific jurisdiction. It held that Revolabs website and inclusion on a list of companies at the workforce services website and one bid for business in Utah were insufficient to create general jurisdiction and, coupled with Revolabs affidavit stating there is no agent employee or other presence in the state, were insufficient to allow discovery on the issue.